BTC recoils to $36K; leverage liquidation hurts
By Laxmikant Khanvilkar
Leading virtual digital assets (VDAs), succumb to liquidation pressure in the last 24-hours, and have lost entire gains of previous two sessions, as the U.S. financial markets regulator – the Securities and Exchange Commission (SEC) delaying its decision on spot Bitcoins ETF applications leaves market with little or no catalyst.
Bitcoin (BTC) slumped below $36,000 mark. The world’s largest cryptocurrency by market cap had almost hit a $38,000 level in the previous session. It recently changed hands at $36,350, down 3.5%.
Ether (ETH) followed the suit by surrendering $2,000 level. It was currently offered at $1,976 losing 4%.
The BTC approaching $38,000 mark seems to have activated sell orders of leverage trades. According to the CoinGlass data, derivatives traders have liquidated leveraged positions worth $340 million over the period.
Most cryptocurrencies followed bitcoin lower during the day, with ether (ETH) dropping 4% over the past 24 hours to $1,960. Solana’s (SOL) and Chainlink’s native token (LINK) declined 6% and 9%, respectively.
Fading the plunge today was Avalanche’s native token (AVAX), extending yesterday’s double-digit rally with another 7% gain.
As a result, the global crypto market cap decreased 3.8% to $1.38 tn, in the last 24-hours. However, the total crypto market volume rose 5.6% to $71.3 bn. The total volume in DeFi is currently $8.8 bn and all stablecoins $63.1 bn, representing 12.3% and 88.5% respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 51.1%, down 0.3% over the day.
IC15 index, the barometer of top fifteen tokens, slumped 4% to 46,113.
Meanwhile, experts are watching the SEC decision on Spot BTC ETF approval. They see rising odds in favour of regulator unlikely to approve any such vehicles this year.
There still could be news this week as Franklin Templeton has a decision deadline of Friday. Few, though, are expecting anything except another delay from the SEC.
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